The report highlighted the need to scale up domestic electronics manufacturing to transform India into an electronics export hub.
The National Council of Applied Economic Research (NCAER) for the Confederation of Indian Industry (CII) submitted a report that suggests inviting Tier 1, Tier 2 and Tier 3 companies to India to create an Indian electronics ecosystem and scale up the volume of production for both the domestic and export markets, for one to five years.
The report highlighted the adverse impact of importing inputs for electronics manufacturing, amidst tariff increases, on the competitiveness of manufacturers in the international market. The report suggested that any decision regarding tariff increases should be made with prior consultation with the nodal ministry which has the primary task of nurturing the ecosystem and industry.
The report recommended that the Ministry of Electronics and Information Technology (MeitY) should facilitate the setting up of electronics manufacturing near the finproductsducts’ (such as mobile handsets) manufacturing under to move towards becoming a large-scale manufacturing hub.
“This would require developing electronic parks, rather than clusters, with full infrastructure development and 100% power so that plug-and-play becomes the norm,” mentioned the report.
With the Budget Session approaching, the report also suggested incentives for the promotion of research & development, with the current expenditure being 0.65% of the GDP, as compared to 2-3% in advanced countries.
The report urged to move the supply chain from mobile handsets to computers, laptops, hearables & wearables, and more advanced electronic items for segments such as healthcare, education, logistics, and entertainment.
